First - nobody is working on that. We have a lot more interesting and pressing things to dedicate time towards. It was an interview done speculatively, and I'm not aware of any active work in this space. Second - if something like that ever happened, you can be sure it wouldn't happen without the user having control over it. Period.

Penello adds that Microsoft could make use of the new Kinect for some interesting features if it were connected to a cloud server, such as having a face be recognized automatically by Kinect when a gamer is at a friend's house. However, he added, " ... or privacy reasons, your facial data doesn't leave the console."